Chamber launches six business groups to bolster digital economy
- Last updated: March 1, 2023 | 20:48
Dubai Chamber of Commerce (DCC) in collaboration with Dubai Chamber of Digital Economy, two of the three chambers operating under Dubai Chambers has launched six business groups within the digital industry.
Strengthening the emirate’s digital economy, the newly setup business groups are for software services, e-commerce, connectivity, online gaming services and e-sports, marketing and social marketing agencies as well as cybersecurity services.
Commenting on the launch of these business groups, Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, and Chairman of Dubai Chamber of Digital Economy said: “The digital economy is a major pillar in Dubai’s D33 Agenda, with UAE embarking on a new phase in which it seeks to pioneer and sustain the growth of an economy based on knowledge, innovation and future technologies. These business groups come in line with D33’s objectives which include generating new economic value from digital transformation, at an average of Dhs100 billion annually.”
Driving the setting up of business groups in Dubai, Mohammad Ali Rashed Lootah, President & CEO of Dubai Chambers, added, “Business groups are the key to ensuring that the various economic sectors in Dubai are well-oiled machines, particularly for the digital space—an industry that is a cornerstone in Dubai’s economy. By providing a forum that facilitates mutual dialogue between the sector’s stakeholders and government entities, the business groups will be able to address policy matters and enhance the competitiveness of their respective sectors.”
Dubai’s robust and dynamic digital industry has seen tremendous development over the last few years. As 5G becomes the most important wireless connectivity technology, it has boosted the experience for users across the UAE. On a global scale, the UAE had one of the fastest median download speed over 5G at 516.15 Mbps and 511.70 Mbps last year, according to GSMA.
As a result, the six sectors—software services, e-commerce, connectivity, online gaming services, e-sports, marketing and social marketing agencies and cybersecurity—saw healthy capital investment flows. According to Pitchbook, in 2022 UAE’s software services saw $365.4 million in capital invested, e-commerce had $281.18 million, gaming saw $159.62 million, e-sports had $1 million in investments, marketing tech witnessed $30.81 million in capital invested. Capital invested in cybersecurity companies and deals in the UAE for 2021 were accounted at $7.25 million.
Dubai Chamber of Digital Economy together with Dubai Chamber of Commerce is committed to unlocking the full potential of Dubai’s digital economy, which has grown two and a half times faster than global GDP over the past two decades, almost doubling in size since 2000. The six new business groups are part of the chambers’ efforts in transforming Dubai into an international technology hub.
Meanwhile last week Dubai Chamber of Commerce, one of the three chambers operating under Dubai Chambers, has launched six business groups within the F&B industry for HORECA traders, meat and poultry, bakeries, organic food, groceries as well as hypermarkets and supermarkets sectors.
“We are on track to reach our goal of setting up 100 business groups by March 202 3 . These six new business groups will help boost the dynamism of Dubai’s F&B industry where UAE consumer foodservice outlets sales are expected to reach Dhs86.4 billion by 2027,” said Mohammad Ali Rashed Lootah, President & CEO of Dubai Chambers.
“Business groups are imperative in ensuring representation of all the business and economic sectors in Dubai. They help facilitate mutual dialogue between stakeholders and government entities and are key to addressing policy matters and enhancing the competitiveness of their respective sectors,” he added.
According to Euromonitor, UAE consumer foodservice sales value reached Dhs58.4 billion in 2022. This figure was driven by the rapid response and recovery from the pandemic as well as strong economic growth.
Fresh food sales are anticipated to grow at a CAGR of 4.9 per cent between 2022 and 2027, while packaged food will see a predicted growth of about 3.9 per cent between the same period. Food manufacturers across the Middle East are predicted to grow profits by a CAGR of 3.6 per cent up to 2026.
According to Euromonitor International, retail sales of traditional groceries are set to rise at a current value CAGR of 3 per cent over the forecast period (2021-2026) to reach Dhs11.4 billion. Retail sales of supermarkets in the UAE are set to rise at a current value CAGR of 4 per cent over the forecast period (2021-2026) to reach Dhs19.7 billion. Foodservice value sales of full-service restaurants in the UAE rose by 24 per cent in current terms in 2022 to reach Dhs32.5 billion.